6.
| (1) |
The deduction to be allowed for the purposes of paragraph 2(1)(a)(ii) or (b) is an amount equal to— |
[Words preceding paragraph 6(1)(a) of the Second Schedule substituted by section 84(1)(a) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - deemed to have come into operation on 1 March 2009]
| (i) |
a lump sum benefit contemplated in paragraph 2(1)(b)(iA), so much of the benefit as is paid or transferred for the benefit of the person from a— |
| (aa) |
pension fund into any pension fund, pension preservation fund or retirement annuity fund; |
| (bb) |
pension preservation fund into any pension fund, pension preservation fund or retirement annuity fund; |
| (cc) |
provident fund into any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; |
| (dd) |
provident preservation fund into any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; and |
| (ee) |
retirement annuity fund into any retirement annuity fund; and |
| (ii) |
a lump sum benefit contemplated in paragraph 2(1)(b)(iB), so much of the benefit as is paid or transferred for the benefit of the person from a— |
| (aa) |
pension fund into any pension fund, pension preservation fund or retirement annuity fund; |
| (bb) |
pension preservation fund into any pension fund, pension preservation fund or retirement annuity fund; |
| (cc) |
provident fund into any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement anuuity fund; |
| (dd) |
provident preservation fund into any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; and |
| (ee) |
retirement annuity fund into any retirement annuity fund; and |
[Paragraph 6(1)(a) of the Second Schedule substituted by section 50(1)(a) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, dated 15 January 2020 - deemed to have come into operation on 1 March 2019 (Section 50(2)]
| (a) |
in the case of a lump sum benefit contemplated in paragraph 2(1)(b)(iA) and (iB), so much of the benefit as is paid or transferred for the benefit of the person from a— |
| (i) |
pension fund, pension preservation fund, provident fund or provident preservation fund into any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; or |
| (ii) |
retirement annuity fund into any retirement annuity fund; and |
[Paragraph 6(1)(a) of the Second Schedule substituted by section 50(1)(b) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, dated 15 January 2020 - is deemed to have come into operation on 1 March 2021 and applies in respect of transfers made on or after that date (Section (40)) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]
| (b) |
in any other case, so much of the aggregate of— |
| (i) |
contributions that did not rank for a deduction against the person's income in terms of section 11F to any pension funds, pension preservation funds, provident funds, provident preservation funds and retirement annuity funds of which he or she is or previously was a member; |
[Paragraph 6(1)(b)(i) of the Second Schedule substituted by section 41(1) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - deemed to have come into operation on 1 March 2016 (section 41(2)]
| (ii) |
any amount transferred for the benefit of the person to any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as a result of an election made as contemplated in section 37D(4)(b)(ii)(cc) of the Pension Funds Act; |
[Paragraph 6(1)(b)(ii) of the Second Schedule substituted by section 87(a) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]
| (iii) |
any amount that is deemed to have accrued to the person as contemplated in paragraph 2(1)(b)(iB); |
| (iv) |
any amount, to the extent that that amount was paid or transferred to a pension preservation fund or provident preservation fund as an unclaimed benefit as defined in section 1 of the Pension Funds Act and was subject to tax prior to that transfer or payment; and |
[Paragraph 6(1)(b)(iv) of the Second Schedule substituted by section 87(b) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]
| (v) |
any other amounts in respect of which the formula in paragraph 2A applies, which have been— |
| (aa) |
paid into a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for the person's benefit by a public sector fund; and |
| (bb) |
transferred into a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund directly from a fund contemplated in sub-subitem (aa) for the person’s benefit, less the amount represented by symbol A when applying that formula, |
[Paragraph 6(1)(b)(v)(bb) of the Second Schedule substituted by section 65(1)(c) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019 - deemed to have come into operation on 1 March 2018 (section 65(3)]
as has not been exempted in terms of section 10C or has not previously been allowed to the person as a deduction in terms of this Schedule in determining any amount to be included in that person's gross income.
| (2) |
The amount determined in terms of subparagraph (1) may not exceed the amount of the lump sum benefit in respect of which it is allowable as a deduction. |
| (3) |
For the purposes of this paragraph, the surrender value of any policy of insurance ceded or otherwise made over to the person by any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund and ceded or otherwise made over by the person to any other such fund, or any amount paid by the person into the latter fund in lieu of or as representing such surrender value or a portion thereof, shall be deemed to be an amount paid into the latter fund by the former fund for the benefit of the taxpayer. |
[Paragraph 6(3) of the Second Schedule substituted by section 113(1)(c) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013)]
Protection of Businesses Act, 1978
